How to determine the year to year percentage annual growth?, business and finance homework help

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Business Finance

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Assignment Overview
Individual Project
Risk and Capital
Tue, 7/4/17
Numeric
100
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1-2 pages

Assignment Details

Click here to download the selected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data.

  1. Determine the year-to-year percentage annual growth in total net sales.
  2. Based only on your answers to question #1, do you think the company achieved its sales goal of +10% annual revenue growth in 2009? Determine the target revenue figure, and explain why you do or do not feel that the company hit its target.
Next, consider Micro Chip's Consolidated Statement of Operations for the year ended September 25, 2008. Download the file here and answer questions 1 and 2.
  1. Use the Percentage Sales Method and a 25% increase in sales to forecast Micro Chip's Consolidated Statement of Operations for the period of September 26, 2008 through September 25, 2009. Assume a 15% tax rate and restructuring costs of 5% of the new sales figure.
  2. Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?

To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at the financial values. Students using Microsoft Excel must provide an adequate explanation of the methodology used to arrive at that answer.

Assignment Guidelines

  • Download the financial statements and consolidated statement of operations by clicking on the links above in the assignment description.
  • Analyze the statements and then answer the four questions listed in the assignment description.
  • Show all work including calculations and formulas. If applicable, provide a detailed explanation of how you used Microsoft Excel to arrive at your answers.
  • Organize your answers, mathematical calculations, and Microsoft Excel data into a Word document of 1-2 pages.

Your submitted assignment (120 points) must include the following:

  • A double-spaced Word document of 1-2 pages that contains your answers to the four questions listed in the assignment description, any calculations you performed, and all formulae that were used. Also, provide your Excel data table(s) along with an explanation of how you arrived at your answers if applicable.

Grading

You will be graded on the accuracy of your financial calculations as well as your demonstrated understanding of financial statement analysis.

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

***I've attached the required financial statement***

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Micro Chip Computer Corporation Selected Financial Data 2008 2007 2006 2005 2004 Micro Chip Computer Corporation Selected Financial Data 2008 2007 2006 2005 2004
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Explanation & Answer

Hello! I have uploaded the answer to this question. Please have a look at it and get back to me in case of anything. Thank you.

1
Running Head: SALES GROWTH AND FORECASTING

Sales Growth and Forecasting
Name
Institution
Date

2
SALES GROWTH AND FORECASTING
Part 1
Solution 1
Determining the year-to-year annual growth rate of sales for a particular year involves
subtracting the net sales of the previous year from the net sales of the year under review and
expressing the result as a percentage of the net sales for the prior year (Gitman et al., 2015). The
formula is as follows:
Year-to-year percentage growth in sales = (Current sales-Previous sales)/Previous sales * 100
The year-to-year percentage annual growth in total net sales for the year 2005, 2006, 2007,
and 2008 are 7.87%, -23.06%, -33.11%, and 35.71%, respectively. Thus, the company experienced
positive growth in 2005 and 2008 and negative growth in 2006 and 2007. There is no year-to-year
growth rate between the year 2003 and 2004 b...


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